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Is Holland a Lumpy Country? An application of the Lens-Condition to Dutch Cities

Author

Listed:
  • Steven Brakman

    (University of Groningen)

  • Tijl Hendrich

    (CPB Netherlands Bureau of Economic Policy Analysis)

  • Charles Marrewijk

    (Utrecht University)

  • Jennifer Olsen

    (CPB Netherlands Bureau of Economic Policy Analysis)

Abstract

Traditional trade theory assumes that countries are dimensionless points. Recent research, however, shows that the internal geography of countries is important for the trade structure of a country. One aspect of internal geography is the uneven spatial distribution of factors of production, which especially concentrate in urban locations. The so-called lens-condition (based on the Heckscher-Ohlin model) tests whether the (urban) distribution of factors of production is uneven enough to affect the national structure of trade and welfare. Our analysis, using firm export data and applying the condition to 22 cities and 4 regions within The Netherlands for 2007–2017, shows that the condition is fulfilled. We explain why.

Suggested Citation

  • Steven Brakman & Tijl Hendrich & Charles Marrewijk & Jennifer Olsen, 2022. "Is Holland a Lumpy Country? An application of the Lens-Condition to Dutch Cities," De Economist, Springer, vol. 170(3), pages 305-321, August.
    • Handle: RePEc:kap:decono:v:170:y:2022:i:3:d:10.1007_s10645-022-09407-7
    DOI: 10.1007/s10645-022-09407-7
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    References listed on IDEAS

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    More about this item

    Keywords

    Comparative Advantage; Cities; Location Characteristics; Lens condition;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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